Advisers have stuck by AMP and are seeing the benefits of a long-term relationship despite the impact of the Hayne royal commission, according to its acting CEO.
At a teleconference briefing yesterday, AMP acting chief executive Mike Wilkins said it has been quite open around what the impact of the royal commission has been on advisers, and that AMP needs to acknowledge that.
However, he added that advisers sticking with AMP are seeing the benefits of keeping a long-term relationship with the group.
“Also, at the same time we're doing a bit of reshaping of that network because we're looking to make sure that that network is as professional as it can be, as productive as it can be, and is obviously as compliant as it can be,” Mr Wilkins said.
Mr Wilkins also quashed the idea of a potential separate listing of either AMP Capital or its wealth management business in Australia.
“That's the case now. We have approved product lists which are available to our advisers, and they will recommend the most appropriate product for the customer, so we have to compete in the same way that others do,” Mr Wilkins said.
“That's both in the wealth management business but also in the wealth protection business because for a long time we've had a suite of other insurers that have been available to our advisers to write, not just AMP.
“Really, the advisers have got a best interest duty, which is why we have moved to that menu of seven years ago.”
Further, Mr Wilkins rejected any notion that its intention to offload its New Zealand wealth management and advice businesses via an IPO or the sell its life insurance business to Resolution Life for $3.3 billion were brought about as a result of the royal commission.
“We were under way with this anyway. We had flagged a portfolio review because we were looking to actually free up and redeploy capital into the longer-term growth businesses that AMP has, and they are our wealth management business, AMP Capital and AMP Bank,” Mr Wilkins said.
“I don't think it's right to say that the royal commission forced this at all.”
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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